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NBA Commissioner Adam Silver proposes a new '3-2-1' lottery system to discourage tanking by giving teams less incentive to lose games. The plan aims to expand the lottery to 16 or 18 teams and includes measures to punish teams that attempt to tank.
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Tanking will be at the top of the agenda when the NBA owners meet later this month, and NBA Commissioner Adam Silver is out doing public relations for his latest "fix" to the issue that bothers the league office and some content creators more than fans of the teams doing it.
The proposal, called the "3-2-1" system, would expand the lottery to 16 teams (or 18 in some versions) and is named after how many ping pong balls each team would get, depending upon their finish — with the worst three teams getting two balls while the teams that finish 4-10 would get three. Silver said why he thought this was a good idea when appearing on Stephen A. Smith’s radio show on Sirius XM (quotes via Tim Bontemps of ESPN).
"What we've essentially done, and we have a proposal that we're going to be bringing to our team owners at the end of May, and that is to create essentially a system of flat odds, so that you have no particular incentive to be bad. There's even something we're calling draft relegation, that if you're one of the bottom three teams in the league, you'll actually have worse odds than teams that sort of are four through up until teams make the playoffs."
The new proposal would also grant more power and leeway to Silver and the league office to punish teams it deems to be tanking. That happened this year when the league fined the Utah Jazz $500,000 for trying to skirt the tanking regulations by playing their stars 20 minutes in a game but benching them in the fourth quarter. (Utah adjusted, came up with injuries for their guys, and just sat them all game.)
"And also ultimately additional authority for the league office that if we do see that type of behavior where there's a sense that teams aren't going all out to win, that we can actually take away draft lottery balls, we can change the order of the draft. Teams have to know it's not just about paying a financial fine, which they may think is worth it in order to get a top pick, but that it'll directly impact their ability to get a top draft pick."
The '3-2-1' lottery system expands the lottery to 16 or 18 teams, giving the worst three teams two ping pong balls and teams finishing 4-10 three balls, aiming to reduce tanking incentives.
Teams that finish in the bottom three will have worse odds in the lottery, discouraging them from intentionally losing games to secure a better draft position.
The NBA can impose fines and other penalties on teams deemed to be tanking, as demonstrated by the $500,000 fine imposed on the Utah Jazz for violating tanking regulations.
NBA owners are set to discuss the new tanking proposal at their meeting scheduled for the end of May.
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Tanking was particularly intense this season — with nine teams actively not looking to win games by the end of the season — because this is a particularly deep and strong draft class. That is not expected to be the case the next couple of seasons, at least, because the next two draft classes are not expected to be particularly strong. The league could have done nothing, and there would be less tanking next year.
The league's 3-2-1 proposal breaks out like this:
• The teams with the three worst records in the league would fall into a "relegation zone" and be penalized by only getting two lottery balls, not three like other teams that missed the playoffs. Those three teams would have a 5.4% chance at the No. 1 pick, and could fall as far as 12th in the draft.
• Other teams that missed the playoffs — teams four through 10 at the bottom of the standings — would get three lottery balls and an 8.1% chance at the No. 1 pick.
• Teams that finish as the No. 9 and 10 seeds in each conference will each get two lottery balls.
• Teams that lose the 7-8 play-in for each conference get one lottery ball (2.7% chance of landing the No. 1 pick).
• Teams cannot win the No. 1 pick in consecutive years or have three consecutive top-five picks (as an example, this would not have allowed the Spurs to draft Dylan Harper No. 2 last season, pairing him with Victor Wembanyama and Stephon Castle, both top-five picks).
• This system would expire in 2029, at which time it could be extended, modified or scrapped entirely.
• There are reports that teams expect there to be less trading of first-round picks as part of packages to get star players because the value of those picks feels diluted. Teams will want to see how the new system plays out (or what it will look like in a few years) before moving picks as they have in recent years.
While the 3-2-1 plan may disincentivize a "race to the bottom" to get the best lottery odds, this system of more teams and flatter odds also means the teams struggling to win games because they don't have enough talent on the roster will find it harder to get that talent through the draft. For many smaller and mid-market teams, the draft is the best and only way to get the kind of talent that makes them a top-four team in the conference; free agents are not going to flock there.
Silver is concerned about how tanking turns off fans, but another way to lose an entire market of fans is for their team to keep losing or being mediocre for years because they can't get the talent to win and have lessened hope of doing so.
The NBA Board of Governors is expected to pass this plan when it meets later in May.